Mukti Community Development Fund (MCDF) and Self Help Group

Project Description

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A major MUKTI initiative under the ‘Livelihood and Economic security’ category is the MCDF or MUKTI Community Development Fund, and its mission is to make rural women who are organised into Self Help Groups, self-reliant within a two years time frame, by providing them with start-up capital, much needed skills development training, and extending micro-financing services in deep interior rural areas where banking is virtually non-existent.

The aim of this project is to create women entrepreneur in villages. MCDF comprises of many self-help groups (SHGs). One member from each SHG takes part in MCDF to take the community fund autonomously forward. MCDF accumulates fund from MUKTI and small saving from its members. This fund is being lent to members. It provides 0% loan to its members after collecting fund s from social investors.

The main objective of the project is to create women entrepreneurs in village with proper skill development training so that women in this area can self-sufficient and contribute to their family and children’s education.

Background of the Project

Followings are the main challenges in this area and seems to be the obstacle to grow the community from holistic perspective:

Low per capita single corps land, Cyclone prone area and no industry, lead to very low average income among the people of Sunderban and women become vulnerable

High interest rate for local loans even in existing micro-credit institution

Lack of confidence on private micro-finance institution

Lack of skill and business development training for local women in this area

Uniqueness of the Project

Autonomous micro-credit based community program to help creating women entrepreneurs in Sunderban

Mukti provides interest free loan to SHG members for a period of 2 years, after collecting funds from social investors

Mukti provides 3 skill development training to SHG members at free of cost over two years’ time period

Mukti also provides an on-line web based platform to the social investors to invest to this program and participate in social business.

What is Micro-finance?

Mukti Community Development Fund (MCDF) is one of Mukti’s projects which creating women entrepreneur in villages. An autonomous body elected from Self Help Group members. Low income group women are involved in SHG concept and develop themselves. The project provides essential entrepreneurship training and micro loans for business development.

MCDF is a group of SHGs. One member from each SHG comes to take part in MCDF to take the project autonomously forward. MCDF gets fund from Mukti and small saving from its members which are being lent to its members.

Does micro-finance really make a difference?

Many claims have been made about the ability of micro-finance to contribute to poverty reduction, but is there any evidence of real impacts?

A review of more than 100 micro-finance programs points to evidence that micro-finance programs can indeed increase incomes and lift families out of poverty. The review found that access to micro-finance empowers women, improves the health and nutrition of the whole family and increases the likelihood of children going to school (Nathanael Goldberg, 2005).